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LAW
Paper · Semantic Scholar
Explaining Deviations from Okun's LawDespite its stability over time, as for any statistical relationship, Okun’s law is subject to deviations that can be large at times. In this paper, we provide a mapping between residuals in Okun’s regressions and structural shocks identified with a SVAR model by inspecting how unemployment responds to the state of the economy. We show that deviations from Okun’s law are a natural and expected outcome once one takes …
picked 13 Aug 2026
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lawsystem of rules and guidelines, generally backed by governmental authority
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